I think this is a smart move by the U -- gives them positive cash flow and gives the season ticket holders a guarantee that they're able to get parking without circling several ramps, etc. The only downside I can see is that more season ticket holders may decide to arrive later for games, knowing that they have a guaranteed spot.
Lot C58 is a good location and was used by a lot of fans with handicap stickers/plates as it has good access to Williams through the Pavilion. I wonder how many spaces will be available under this program for able-bodied ticket holders ... it seemed to be "handicapped only" for most (if not all) of the B10 conference games.
I'll probably stay with getting to the games early and parking on the street. Then I can justify a beer or two after the game because I "saved" money and "banked" calories with the walk. Of course, we need to still deal with the wind and snow/ice falling horizontally.